CMI Level 6 Management and Leadership

Name of the Unit: Ethical organisational management

Number of Word count: 2095

Table of Contents

Introduction.. 3

TASK 1. 3

A.C. 1.1 – Discuss the concept of ethics in an organisational context 3

A.C. 1.2 – Evaluate those factors which could influence organisational ethics. 3

A.C. 2.1 – Evaluate an organisational code of ethics. 4

TASK 2. 4

A.C. 1.3 – Outline the effect of organisational ethics on corporate social responsibilities  4

A.C. 2.3 – Evaluate the impact of ethical values and concepts to the different cultures and societies in which organisations may operate. 5

TASK 3. 6

A.C. 2.2 – Interpret ethically related legislation impacting upon organisational accountability  6

TASK 4. 6

A.C. 3.1 – Describe values and beliefs on which ethical decisions can be made by individuals, groups and senior managers in an organisation.. 6

A.C. 3.2 – Discuss how a values and beliefs strategy in different cultures and societies could influence their attitude to the organisation.. 7

TASK 5. 7

A.C. 3.3 – Discuss an ethical organisational approach that could recognise and/or respect other cultural value systems or ideologies. 7

Conclusion.. 7

References. 9

Introduction

Ethics in the organization are the standards that govern workplace relationships and business operations (Chun, et al., 2013). Ethics are exhibited in the form of integrity, transparency, accountability, compassion, respect and fairness. Furthermore, ethics plays a significant role in an organization’s corporate social responsibility. It assists organizations to manage different cross-cultural subjects.

TASK 1

A.C. 1.1 – Discuss the concept of ethics in an organisational context

Organizational ethics are the principals by which companies’ functions and are established through integrity. It is imperative organizations ensures employees understand organization ethics and can conform. An organization is shaped through amalgamation working towards predefined objectives. Employees must ensure the company ethics are adhered to in order to establish a positive working environment.

Organizational ethics are the guidelines and procedures enacted in the company to help the organization manage various challenges. A positive organizational culture plays a significant role in the company. When a company invests its resources in formulating strategies and guidelines, the outcome is a positive organizational culture. Examples of such policies are equality for growth and anti-discriminatory policies. Additionally, for an organization to maintain its customer relationship to inspire its corporate brand, the organization should enforce ethical practices (Ferrell, 2016). In Unilever, the company opts for upholding honesty and fairness in its marketing initiatives. If an organization deal with complaints in an adverse method, the company is subjected to the possibility of misplacing its customer confidence. Additionally, if the organization fails to develop policies and guidelines to enforce ethical practice, the company is at risk of financial liabilities. Therefore, it is essential ethical practices are defined and incorporated in the organization structure and strategies.

A.C. 1.2 – Evaluate those factors which could influence organisational ethics

Various factors affect organizational ethics, such as values and individual goals. Ethical factors involve methods and actions which influence behaviour in amenability with the environment. Ethical concerns in management involve integrity and the overall impact the organization has internally and externally.

In contemporary society, companies are cognisant of innumerable ethical issues, and as a result, several strategies are put in place to improve the ethical standards of the organization (Mihai & Alina, 2013). However, there are some factors that influences the role managers partake in making ethical decisions. A personal code of ethics is a component that influences organizational ethics. It refers to an individual’s code of ethics that they consider when they intend to make a decision. Government legislation can also influence organizational ethics (Mihai & Alina, 2013). Government involvement in business is to regulate and oversee unethical and various unwanted business practices. The ethical code of an organization can also influences how managers make ethical decisions. As a company develops, the ethical standards also develop in order to prevent any instance of unethical practices that can harm the company’s brand and public image. Societal pressure also influences ethical decisions (Ferrell, 2016). For example, if company supplies average products and become involved in unethical endeavours, the clients will become indifferent with the company. Thus, it is important for organization to display ethical standards.

A.C. 2.1 – Evaluate an organisational code of ethics

A code of ethics elucidates a company’s values, mission and policies connecting them with the principles of professional conduct. Unilever’s code of business principles is an example of expectation in a code of ethics. Unilever’s standard of conduct clarifies how the company operates with openness, integrity and transparency (Sekerka, et al., 2014). The company concentrates on issues such as human rights and the wellbeing of staff members. Furthermore, the company requires the staff members to observe the law of its country of operation.  The company’s code of ethics also regards the employee and promotes a working environment that facilitates diversity and equal chances. The code of ethics also permits Unilever to provide the customers with branded products that are made in conformance with quality standards, acceptable practices and affordability. It also operates by its corporate governance where the shareholders are provided with timely and reliable financial, structural and performance-based information. The code of ethics permits the company to establish mutual relationships with the customers, suppliers, and business partners (Sert, et al., 2014). The code of ethics also facilitates community involvement, where Unilever fulfils its responsibilities as it gives back to the community. Ensuring the organization has an overall positive impact on the community it operates within.

TASK 2

A.C. 1.3 – Outline the effect of organisational ethics on corporate social responsibilities

In the case of CSR, ethics refers to the apparent duties of the organization to observe centralised laws in order to avoid situations that enervate the wellbeing of the customers, staff members, and the stakeholders. An organization’s corporate theory of ethics can influence its workforce by developing trust. Pertaining to the social contract theory of ethics, an organization has an ethical responsibility of improving the welfares of staff members and the clients within the law (Shafer, 2015). Based on fairness and competition, a business’s concept of ethics enables it to inspire fairness among the staff members. The business permits the staff members to participate exhausting fair business strategies without destructively effecting each other’s performance. As such, the organization will be able to reach a higher level of accomplishment.

Based on the transparency of organizational practices, social obligation needs an aspect of transparency in order to ensure the clients the company has nothing to obscure. An organization that does not permit the public to view its environmental endeavours can be faced with indifferent customers. When a business gives the customers a chance to observe their business and environmental initiatives, the employees are more likely to observe the rules and regulations of the organization (Thiel, et al., 2012). Since CSR is also environmentally conscious, minimizing waste inspires the staff members to safeguard office equipment and supplies to minimize the number of disposable goods. Rationalizing an organization’s waste management program can bring about increase productivity and workforce engagement.

A.C. 2.3 – Evaluate the impact of ethical values and concepts to the different cultures and societies in which organisations may operate

Organizational ethical values and concepts could influence various cultures as well as the society the companies operates. Ethical values and concepts may bring about several impacts on different cultures. For example, ethical values and concepts promotes equality and justice where people can freely coincide. Intrinsically, ethics acts as a regulator that helps in pointing various issues that may bring about conflicts within different cultures (Mihai & Alina, 2013). As such, it assists to reinstate congruence between cultures that were forced to disagree. In organizations, ethical values and concepts instils a positive corporate culture. For instance, in Unilever company, the company has various policies and procedures that enforce a business integrity culture. It also helps to boost consumer confidence when an organization adheres and upholds ethical values and concepts. In the society, ethical values and concepts also play a significant role (Sekerka, et al., 2014). Various cultures have been able to overcome language barrier, establish a peaceful coexistence and outline issues that may lead to various disagreements. Cultures affect interpretation of organization strategies and plays a factor on what ethical values are emphasize and communicated.

TASK 3

A.C. 2.2 – Interpret ethically related legislation impacting upon organisational accountability

Examples of two laws in the United Kingdom governing organizational ethics are the Bribery Act of 2010 and the Equality Act of 2010. The Bribery Act of 2010 forbids any act of bribery from public officials and organization-to-organization bribery (Sekerka, et al., 2014). Organizational accountability refers to a clear definition of a corporation’s core values, mission and objectives. It also means that the staff members are held responsible for achieving these goals. As such, the laws influence organizational accountability in several ways. The Bribery Act 2010 influences organizational accountability by establishing a new corporate offence (Sert, et al., 2014). The organizational offence is regarded as a stringent liability offence which means that a company may commit transgression without its knowledge. As such, it is upon the company to take the necessary procedures to prove that it had sufficient measures in place developed to prevent individuals connected with the misconduct from undertaking such transgression. On the other hand, the Equality Act 2010 also influences organizational accountability in several ways. The Act elaborates a collection of characteristics (Mihai & Alina, 2013). As such, it states that if any individual or other parties disregards the other based on these characteristics, then it is unlawful. Examples of such factors are age, disability, race, religion, and many others.

TASK 4

A.C. 3.1 – Describe values and beliefs on which ethical decisions can be made by individuals, groups and senior managers in an organisation

Values and beliefs contribute to an integral role in making ethical decisions. Organization leaders have a direct role in inducing organizational ethics and establishing an environment that foster ethical values and refrain from unethical environmental practices. Ethically taking into consideration finances, expansion of the organization and reducing negative impact on the environment. For example, refraining from malicious actions towards competitors.

Individual values have usually been a factor associated to individual decision behaviour. Examples of values are Integrity, commitment, innovation, motivation, perseverance, and respect.

Examples of beliefs are leading by illustration, showing respect, recognising accountability. Individuals, groups, and senior managers can make ethical decisions based on integrity. Integrity incorporates responsibility, honesty, consistency, decency, commitment, and sincerity.

A.C. 3.2 – Discuss how a values and beliefs strategy in different cultures and societies could influence their attitude to the organisation

Culture is an integral part of any organization because it shapes individual’s behaviour, customer service and innovation. As a result, values and beliefs in different cultures can influence the attitude of employees in several ways. Initially, values and beliefs of different cultures act as a firm’s internal and external identity (Ferrell, 2016). Second, these values and beliefs can shape the company’s core values. It is important that managers and human resources understand the cultural values in the environment that the company functions. When implementing comprehensive business initiatives, cultural differences should be considered to reduce miscommunication and confrontation. organizational culture replicates the values, beliefs and behavioural standards that are used by employees to interpret their surroundings. Thus, these aspects are essential and should be taken into consideration when establishing organization standards and values. Culture can either influence staff members to be advocates of the company or critics. Values and beliefs of a culture can inspire the employees to reach their full potential which in turn boosts organizational performance. Lastly, culture can inspire teamwork in an organization.

The culture within an organization is significant factor in establishing a positive working environment to maximise productivity. Understanding the organization’s core values can prevent internal conflict

The response to organizational procedures communicated to employees, can affect work behaviour, morale and attaining organization objectives.

TASK 5

A.C. 3.3 – Discuss an ethical organisational approach that could recognise and/or respect other cultural value systems or ideologies

In diverse organizations, the ability to work with various people with diverse values and cultures is significant. When an organization’s culture is implemented it should ensure employees are recognized and valued which creates job satisfaction and positive outcomes (Custominsight.com, 2019).

There are several ethical organizational approaches that recognizes and respects other cultures and their value systems and principles. For example, corporate social responsibility is an ethical organizational approach whose aim is to protect the community.

As technology advances and organizations become global, ethical issues become precedence in order to strengthen business connections.

Another example of such an ethical approach by organizations is uniform treatment of all staff members (Sert, et al., 2014).  Organizations promote sensitivity training in the form of seminars to discuss various discrimination issues. As such, organizations value other cultures by such approaches.

Conclusion

Ethical practices are an integral part and process of organizational management. In various situations, organizational leaders will encounter circumstances that will test their ethical principles. Occasionally organizations are challenged with ethical dilemmas. However, individuals’ values and beliefs can assist organizational leaders to make ethical decisions and take into consideration long term impact across the chain.

An organization’s culture is driven by the values sustained throughout that organization. The established culture should be based on a strongly shared set of beliefs that are supported by strategy and structure.

Organizational culture reflects the values, beliefs and purpose that influence employee’s reaction to the environment and situation encountered. It is important understand cultural differences and procedures in order to reduce conflict and enhance the ability to work cohesively.

leadership and ethics influence the team communication and act as a catalyst to achieve ethically the organization objectives, improve job satisfaction and ethical functions.

References

Chun, J.S., Shin, Y., Choi, J.N., and Kim, M.S., 2013. How do corporate ethics contribute to firm financial performance? The mediating role of collective organizational commitment and organizational citizenship behavior. Journal of Management, 39(4), pp.853-877.

Farooq, O., Payaud, M., Merunka, D., and Valette-Florence, P., 2014. The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms. Journal of Business Ethics, 125(4), pp.563-580.

Ferrell, O.C., 2016. A framework for understanding organizational ethics. In Business ethics: New challenges for business schools and corporate leaders (pp. 15-29). Routledge.

Mihai, B., and Alina, A.N., 2013. Business ethics implementation in the organizational culture of companies. Annals of the University of Oradea, Economic Science Series, 22(1), pp.44-53.

Sekerka, L.E., Comer, D.R., and Godwin, L.N., 2014. Positive organizational ethics: Cultivating and sustaining decent performance. Journal of Business Ethics, 119(4), pp.435-444.

Sert, A., Elçi, M., Uslu, T., and Şener, İ., 2014. The effects of organizational justice and ethical climate on perceived work-related stress. Procedia-Social and Behavioral Sciences, 150, pp.1187-1198.

Shafer, W.E., 2015. Ethical climate, social responsibility, and earnings management. Journal of Business Ethics, 126(1), pp.43-60.

Thiel, C.E., Bagdasarov, Z., Harkrider, L., Johnson, J.F., and Mumford, M.D., 2012. Leader ethical decision-making in organizations: Strategies for sensemaking. Journal of Business Ethics, 107(1), pp.49-64.

Wu, L.Z., Kwan, H.K., Yim, F.H.K., Chiu, R.K., and He, X., 2015. CEO ethical leadership and corporate social responsibility: A moderated mediation model. Journal of Business Ethics, 130(4), pp.819-831. (Chun, et al., 2013) (Farooq, et al., 2014) (Ferrell, 2016) (Mihai & Alina, 2013) (Sekerka, et al., 2014) (Sert, et al., 2014) (Shafer, 2015) (Thiel, et al., 2012) (Wu, 2015)

Custominsight.com. (2019). What is Employee Satisfaction? Employee Engagement vs. Employee Satisfaction, the Importance of Engagement. [online] Available at: https://www.custominsight.com/employee-engagement-survey/what-is-employee-satisfaction.asp [Accessed 15 Dec. 2019].